How is the relationship marketing school of thought different from the transaction school of thought? Are there deficiencies in the transaction concept that the relationship school has identified?
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Relationship marketing is all about creating longitudinal bonds with customers, which will produce stronger, long-term purchasing and word-of-mouth activity. This type of marketing will also increase referrals, price and service tolerance, plus a willingness to provide information and active inclusion of purchasers in product development.
Transactional marketing is all about delivering the rational, or functional, basic table-stakes components of value delivery. This type of marketing generates passive, transitory, and reactive relationships with the customer, and tends to be short-term in nature. Transactional marketing also tends to commoditize the value proposition.
This was first published in January 2007